Why Buy Rather than Rent?

Each rental property comes with a list of do's and don'ts, making it difficult for you to enjoy the home fully.

Home buying is at the heart of the American dream, and rightfully so; however, after the housing crisis, there are more people treading carefully and choosing to delay the home buying process in favor of renting. While there are benefits to both renting and buying, the latter has the potential to give you a long-term payoff.

There are more considerations to make when buying a home than when renting. Prices and options are more varied; additionally, there are more stakeholders involved in the home buying process. However, once you tick off all the boxes, you will enjoy home ownership more than renting.

Plant your Roots

Buying a home allows you to plant your roots and become a member of a community. You can make adjustments to customize the home to your needs or plant a flower garden without asking for permission.

Planting your roots in a neighborhood you love can improve your quality of life and give you the confidence to make big decisions in life such as committing to a job abroad, with the knowledge that you have a house waiting for you when you are ready to come back home.

Financial Maturity

Home ownership forces you to become more careful with your finances; there is more at stake if you fail to keep up with your mortgage payments. You will always find yourself saving enough every month to keep up with your mortgage payments and monthly bills, which gradually become a habit towards financial consciousness. Over a long period, home ownership helps you build wealth and a health saving culture.

Huge Tax Advantages

The amazing tax advantages you get once you start making your mortgage payments are reason enough for you to consider home ownership over renting. Once you sign the home ownership documents, you can start deduction your mortgage interests from your federal income taxes.

You will soon realize that this is a significant amount, as the larger percentage of your mortgage, especially in the early years, goes towards covering the interests. Additionally, you can deduct other property taxes and closing fees.

A Fixed Payment Plan

Renting a home means exposing yourself to rent hikes that are often out of your control. If you choose to rent in an area without rent control, you will find yourself at the mercy of your landlord every month. If you are lucky to find a rental home in an area with rental control, you will have to agree to exceptions that allow the property owner to hike the rent under circumstances beyond your control.

On the flipside, a fixed home mortgage guarantees you a fixed payment over the life if the loan, whether you choose a 5 or 30 year agreement. You can plan your finances and save accordingly without worrying about unexpected payments on the home.

Long-Term Savings

Home buying is a cheaper option by up to 45 percent in the long-term. In the beginning, you may have to spend more if you are buying than if you are renting, without considering costs you might incur trying to improve your new home. However, once you settle into your new home, you will find yourself spending less over time.

Additional cost saving opportunities include avoiding changes in rental charges and tax benefits. Once you factor in the possibility of the value of your property going up over the years, you are in for a good ride. Lastly, mortgage payments do not last a lifetime; once you finish your payments, you can keep the home for good.

Freedom

Each rental property comes with a list of do's and don'ts, making it difficult for you to enjoy the home fully. For example, some properties will have a no pet policy, which can make life hard for you if you have owned a pet all your life. Additionally, you cannot make changes to the property as you wish to accommodate the needs of your family, such as converting the garage into an extra room or expanding the closet space.

Invest in your Family

Whether you make the decision to own a home on your own or with a partner, it is an investment that will benefit your family in the long run. You can start a family without having to worry about a landlord, who might decide to sell the home on a whim, leaving you stranded. You can also remortgage the home later to support your loved ones, for example, through college.

Conclusion

Buying a home gives you freedom and financial stability you will enjoy for a long time. Buy a home early to avoid wasting money on rentals; a mortgage early on in life means more stability over the years. You can complete your payments before retirement and re-direct the money to exploring the world.